Canada's provinces are bracing for a showdown with the Harper government as they approach the deadline for a new federal medicare-funding deal, with the risk that rising health-care costs could crowd out investment in schools and other programs.

Provincial officials worry about the signals from Prime Minister Stephen Harper: his government appears in no hurry to confront the competing pressures of rising budgets and an aging population that could further accelerate costs. So far, the only public statement on the prospects for a new health-funding deal is a suggestion from the Finance Minister of applying the brakes to spending increases.

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